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Archive for February, 2010

Tax Return

February 14th, 2010 at 09:27 pm

We got our tax return this week. I have a payment pending to pay off my smallest student loan with Sallie Mae. This is the first loan we started "attacking" in September on our quest to becoming debt free. The beginning balance on this loan around $7781, as of Wednesday next week $0! It will also bring our total debt down under $90k. It still seems like such a huge number. I am just praying for the motivation to continue as the months go on this year. We also did a little tax planning for this year. All of the work I have been doing has been as a independent contractor so I'm going to be responsible for self-employment taxes on around $14,000 at the end of 2010. We have increased my husbands 401k to 10% (which I know it should be at anyways) in hopes of decreasing our taxable income this year. It also means $400 less per month in take home pay. This is just an approximation, we'll find out for sure on the first of March. It shouldn't be a problem while I'm working but as of May 1st I won't have a job anymore. It'll definitely be a year of challenge but I am hoping with some dedication we can continue to chip away at our debt.

My father-in-law doesn't understand why I'm so set on paying off everything. He told me this is my husbands shore duty and we should be enjoying it more and not living on such a tight budget. (His outlook on money is much different than mine). We may not be doing everything we would like to here but we are enjoying ourselves and the thought of being debt free by the next time he deploys would bring more peace to me than I could ever describe. It stresses me out owing this much money. It's sad to think a lot of people think it's normal in my life. Yes, it's student loans mainly but our degrees won't be our until they are paid for. And, even though they may be considered "good debt" they are still debt.

Anyway, enough of my ranting. Have a great President's Day!